Business
Acquisition of SWAT
Acquisition of SWAT.
About this update from Wilmington Plc
[{"type":"text","content":"\n \nRNS Number : 6764E Wilmington PLC 20 July 2016 \n\n20 July 2016\nWilmington plc\n \nAcquisition of SWAT\n- Extends presence in the accountancy training and technical support market -\n- SWAT will sit within Wilmington's Finance Division - \n \nWilmington plc (\"Wilmington\"), the knowledge leader in Risk & Compliance, Finance, Legal, and Insight announces the acquisition by its subsidiary, Mercia Group Limited, of SWAT Group Limited (\"SWAT\" or \"the Business\"), a provider of training and technical compliance support to accountancy firms in London and the South West of England. \n \nThe consideration will be settled by an initial cash payment of £2.4m and a deferred consideration payment of up to £3.0m payable in September 2018 in cash subject to SWAT achieving challenging profit targets over the two financial years ending 30 June 2018. On acquisition SWAT will have £0.5m in cash.\n \nThe consideration will be financed out of the Group's existing £65m multicurrency debt facility and the acquisition is expected to be earnings enhancing in the first full year of ownership. The acquisition of SWAT which generates 50% of its revenue from subscription based products is consistent with Wilmington's strategy of acquiring complimentary businesses with high repeat revenues and strong, cash generative income streams in the Group's key markets. The Business will form part of the Finance Division. \n \nBackground to SWAT\nThe Business was formed as South West Accountancy Tutors in 1976 to provide training and compliance services to practising firms of accountants across Devon and Cornwall. Since then the Business has expanded its client base and now also has offices in Plymouth and London. SWAT will work alongside Wilmington's existing accountancy business, Mercia (\"Mercia\"). The existing management team of SWAT, led by Adrian Gibbons and David Norris, will remain with the Business and, along with four other individuals, comprise the vendors of SWAT.\n \nAcquisition rationale \nThe acquisition gives the Group a bigger presence in London, and extends the Group's business into the South West of England where Mercia has been under-represented. The acquisition also provides Mercia with a clear opportunity to sell its technical and ma...